Generating Wealth With Private Lending

GCA Financial

Agenda

Today, We Will Discuss:

Earning High Yields

Secured by Real Estate

While YOU Stay In Control of YOUR Money.

& Receive MONTHLY Payments

What Private Lending Is NOT!

What is Private Lending?

What is Private Lending?

“Private Lending" refers to a private individual making a loan to another

individual with real estate as collateral.

You Are The BankYour Name Is On The Note and Deed of Trust

“Private Lending" refers to a private individual making a loan to another

individual with real estate as collateral.

You Are The BankYour Name Is On The Note and Deed of Trust

Why Haven’t I Heard of This?

Benefits of Private Lending

• Secured By Tangible Property

• Safety - Low Risk As long as there is value in the property, your investment is secure.

• Great Returns

• People are familiar with real estate investing because real estate ownership is so common.

• Receive monthly payments

Basics

• Let’s assume we have a $500k house in the San Francisco Bay Area…

VALUE: $500k

LOAN: $300K (60%)

PROTECTIVE EQUITY: $200K (40%)

We lend NO MORE than 60% of value…

This is our “protection”, our cushion…

Why Would Someone Pay x%?

IMAGINE THIS SCENARIO:

You get a chance to buy a property worth $500,000 in today’s market for $250,000.

You have 5 days to close.

The bank will only accept cash.

Do you care if you pay 12% for 6 months if you can CLOSE on the deal?

Why Would Someone Pay x%?

• Immediacy: Access to capital much faster than conventional lender.

• Asset Based Underwriting: Borrower qualifications can be subordinate to value of the property.

• Timeliness: Conventional lenders are not fond of short term loans

• Improvement Costs: “Rehab Loans” can include the cost to improve the property, increasing equity

• Number of Loans: Traditional lenders limit number of loans

Our BrokerServices

Loan. You Receive

Monthly $$$

How Does It Work?

5 STEP SYSTEM

Borrower Requests Loan and

Submits all Docs

Our BrokerConfirmsViability

InvestorIntroduced

To Project & Makes

Commitment

EscrowOpened & Investor Places Funds

Remember: YOU ARE THE BANK

What Does It Cost Me?

Typical Investment

• 65% LTV• 6 months to 18 months• 1st Deed of Trust • 8% to 11% Interest Rate• 1% Servicing Fee• Non-Owner Occupied, 1-4 unit Residential properties

(mentioned before)• Properties within 100-mile radius of office• Rehab Loans for Fix & Flip deals

How Am I Protected?

Every Investment Has Risk!

• Almost all loans will have at least one late payment. (you get paid more for that – borrower pays penalty)

• A portion will turn in “default”• A smaller portion will go into “foreclosure”• Very few make it all the way to auction. Why? Protective

Equity!• The MOST important number to look out for in private

lending is VALUE of property.

Private Lending vs. Stocks

Private Lending• Great cash flow generator

– and quickly• Use OPE (other people’s

experience)• Use OPT (other people’s

time)• Passive income• Relatively secure• Higher returns than stock

market

Stocks• Not good for cash flow• Based on demand and

supply – beyond your control

• S&P 500 Lower returns• No collateral

Conclusion

Private Lending is still one of the relatively safest investments you can make that also offers you a

high return and consistent monthly cash flow.

Conclusion

Do you know someone who would like to take advantage of one of the

greatest opportunities in our lifetime with low risk and high returns?

Contact: Tom Braegelmann